Financial Literacy and Retirement Planning in Pakistan


  • Shumaila Zeb
  • Atif Bilal


Financial literacy; retirement planning; investment behavior


In this paper, we analyze the financial literacy level of individuals using sociodemographic variables, namely age, sex, education level, working in the financial sector, experience level, and income level. Next, we investigate the impact of financial literacy on retirement planning. The empirical results are based on a survey of 472 individuals from Pakistan. The results reveal that an individual's financial literacy has a positive and significant relationship with retirement planning. The findings further reveal that males are more financially literate than females. The results also show that as age increases, people become more careful in spending and concerned about their retirement life, hence start savings as a part of their retirement planning. The findings emphasize the necessity of creating more awareness to enhance the financial literacy levels to help the individuals to plan for their retirements.